The owners of Mountain Sports Ltd. are currently reviewing a proposal to adopt a new product line - BMX Bicycles. This new product line will be compatible with the Mountain Bikes and open a new target market, younger customers. It is anticipated that the BMX line be introduced next spring. Management has estimated the following: Expected sales in bikes Average selling price per bike Purchase cost (COGS) per bike Assembly cost per bike Sales clerks required - seasonal Monthly Salary per Sales Clerk Sales commissions Advertising campaign (annual cost) 360 $ 370.00 $ 112.00 $ 60.00 2 $ 1,202 14% $ 5,860 The additional sales clerks required for the BMX line will only work for four months of the year (May to August). Part A (Chapter 6) (13 marks): Prepare a CVP income statement (for a one year period) to determine the segment margin for the new BMX Bikes product line. BMX Product Line Budgeted CVP Income Statement For the year ended December 31, 2020 TOTAL Per Bike Percentage Number of Bikes 360 Sales Revenue 100% Less: Variable Costs (must be listed alphabetically) Total Variable costs Less: Fixed Costs (must be listed alphabetically) Total Fixed Cost BMX SEGMENT MARGIN 0